MUMBAI: The Indian rupee appreciated by 3 paise to 86.58 against the US dollar in early trade on Friday, buoyed by a slight softening of the American currency in global markets. Despite higher crude oil prices and continued volatility in global financial trends, foreign fund outflows from domestic equities limited the rupee’s recovery, according to forex traders.
At the interbank foreign exchange market, the rupee opened marginally stronger at 86.60 and briefly climbed to a session high of 86.55 before stabilizing at 86.58 in early trading. This marked a modest 3 paise improvement from its previous close of 86.61.
The rupee's performance this week has been mixed. On Thursday, it had depreciated by 21 paise to close at 86.61, following global cues and persistent foreign outflows. However, earlier in the week, the rupee managed to gain 13 paise to settle at 86.40 on Wednesday, rebounding 17 paise from its record low of 86.70 touched earlier.
Forex experts attribute the rupee's fluctuations to global market dynamics, including the movement of the US dollar, crude oil prices, and investor sentiment. While the softening of the dollar provided some relief to the Indian currency, external pressures such as elevated crude oil prices and volatility in equity markets continue to influence its trajectory.
Market participants are closely monitoring global economic indicators and geopolitical developments to assess their potential impact on the rupee's performance in the coming days.
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